Abu Dhabi To Loan Kenya Ksh193 Billion After IMF Withdrew Offer

President William Ruto's administration has started negotiations with the United Arab Emirates (UAE) to get a Ksh193 billion ($1.5 billion) loan to help bridge the budget deficit.

This comes after Kenya failed to acquire a loan from the International Monetary Fund (IMF) which withdrew the offer after the Finance Bill of 2024 was withdrawn. The Finance bill was a condition for receiving funds from the Bretton Woods institution. 

According to Bloomberg, the loan is expected to bear an interest rate of approximately 8.2%. However, the terms and conditions of the credit are subject to change as negotiations progress.

Read also: Revealed: Kenya's Ksh131 Billion IMF Loan Was Cancelled After Finance Bill Fall

Kenya, currently facing a budget deficit of 4.3 % of its GDP, urgently needs funds as an alternative to the Ksh77 billion loan from the International Monetary Fund (IMF).

The Finance Bill 2024 was withdrawn by the President on June 26th after public demonstrations against the contentious bill.

Govt Initiates Talks With Striking Lecturers

Labour Cabinet Secretary Alfred Mutua engaged in discussions with university union officials on Wednesday, September 25, in an attempt to resolve the ongoing lecturers' strike.

Mutua held meetings with Constantine Wasonga, the Secretary General of the Universities Academic Staff Union (UASU), and Charles Mukhwaya, the Secretary General of the Kenya Universities Staff Union (KUSU). 

The meeting resulted in the decision to form an inter-ministerial negotiating team. The committee, CS Mutua said, will be tasked with addressing the unions’ concerns and formulating a return-to-work agreement.

Read also: Adani Group Issues Statement After Reports of a 17-Day Approval for JKIA Deal

The committee will comprise representatives from the Ministry of Labour, Ministry of Education, National Treasury, Salaries and Remuneration Commission (SRC), public universities, the State Corporations Advisory Committee (SCAC), and KUSU and UASU unions.

The lecturers downed their tools demanding salary increments and Collective Bargaining Agreements (CBA) adhered to.

The strike by university lecturers and staff has now entered its second week, disrupting academic activities in all public universities across the country.

The CS stressed the importance of taking  action to resolve the root cause of the strike.

“We cannot allow these matters to fester and disrupt the education of thousands of students,” the CS said.